Vectrus Systems LLC awarded $132M for Keesler Base Operations Support, facing scrutiny over value and competition

Contract Overview

Contract Amount: $131,982,956 ($132.0M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-16

End Date: 2023-09-30

Contract Duration: 2,358 days

Daily Burn Rate: $56.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF KEESLER BASE OPERATIONS SUPPORT SERVICES,

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39534

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $132.0 million to VECTRUS SYSTEMS LLC for work described as: IGF::CT::IGF KEESLER BASE OPERATIONS SUPPORT SERVICES, Key points: 1. The contract's value of $132 million over its period of performance raises questions about cost-effectiveness. 2. Full and open competition was utilized, but the number of bidders (4) warrants further examination for price discovery. 3. The contract's duration and fixed-price nature present potential risks if scope changes or unforeseen issues arise. 4. Performance context is limited without specific metrics on service delivery quality and efficiency. 5. Facilities Support Services is a broad category, making direct comparisons challenging without granular detail. 6. The absence of small business set-asides or reported subcontracting suggests limited direct impact on that ecosystem.

Value Assessment

Rating: fair

Benchmarking the value of this $132 million contract for base operations support is challenging without detailed service breakdowns and performance metrics. Compared to similar large-scale base support contracts, the price appears within a typical range, but the lack of specific performance data makes a definitive value-for-money assessment difficult. The fixed-price structure suggests a defined scope, but potential for cost overruns exists if requirements evolve or unforeseen operational challenges emerge.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With four bidders participating, the competition level suggests a moderately competitive environment. While multiple bidders are positive, the specific dynamics and the number of proposals received are crucial for understanding how effectively price discovery occurred. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a wide range of potential providers. However, with only four bidders, taxpayers may not have realized the absolute lowest possible price that could have been achieved with broader market engagement.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel stationed at Keesler Base, who receive essential operational support services. Services delivered likely include facility maintenance, logistics, transportation, and potentially other base support functions critical for military operations. The geographic impact is concentrated at Keesler Air Force Base in Mississippi, supporting its mission readiness and personnel. Workforce implications include direct employment by Vectrus Systems LLC and potential indirect employment in supporting industries within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The fixed-price contract type could lead to cost increases if unforeseen issues arise or scope creep occurs.
Limited information on the competitive landscape beyond the number of bidders makes it hard to gauge optimal price discovery.
Absence of small business participation or set-asides may limit opportunities for smaller enterprises.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
The contract has a defined period of performance, providing a clear timeline for service delivery.
The fixed-price contract type offers budget predictability for the government, assuming scope is well-defined.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services essential for maintaining government installations. This contract represents a substantial portion of spending within this category for a major Air Force base. Comparable spending benchmarks for base operations support can vary widely based on the size and complexity of the installation, but contracts in the tens to hundreds of millions of dollars are common for large military bases.

Small Business Impact

This contract does not appear to have included specific small business set-asides, nor is there information indicating significant subcontracting to small businesses. This suggests that the primary focus was on securing a large-scale service provider through open competition, potentially overlooking opportunities to foster small business participation in this particular award. The impact on the small business ecosystem is likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Air Force contracting and financial management offices. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is moderate, with basic contract award details available, but comprehensive performance and cost data may be less accessible to the public.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Department of Defense Contracts
Air Force Installation Support

Risk Flags

Potential for cost overruns due to fixed-price nature if scope is not well-defined.
Limited transparency on specific performance metrics and value for money.
Moderate competition level (4 bidders) may not have yielded the most competitive pricing.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $132.0 million to VECTRUS SYSTEMS LLC. IGF::CT::IGF KEESLER BASE OPERATIONS SUPPORT SERVICES,

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $132.0 million.

What is the period of performance?

Start: 2017-04-16. End: 2023-09-30.

What is Vectrus Systems LLC's track record with similar base operations support contracts?

Vectrus Systems LLC has a history of performing base operations support services for the U.S. military. They have held numerous contracts, including significant ones for large installations. Their performance record on these contracts would need to be reviewed in detail, looking at past performance evaluations, any contract disputes, and their ability to meet key performance indicators. A review of their financial stability and past project management successes or failures would provide further context on their capability to execute a contract of this magnitude effectively and efficiently.

How does the $132 million award compare to historical spending on Keesler Base Operations Support?

To assess historical spending, one would need to examine prior contracts awarded for Keesler Base Operations Support. This would involve identifying the incumbent contractor, the contract types, durations, and award values over the past 5-10 years. Comparing the current $132 million award to previous figures would reveal whether spending has increased, decreased, or remained relatively stable. Factors such as inflation, changes in base population or mission requirements, and shifts in contracting strategies (e.g., from multiple smaller contracts to a single large one) could explain any significant variances in spending.

What are the key performance indicators (KPIs) for this contract, and how has Vectrus performed against them?

Key Performance Indicators (KPIs) for base operations support contracts typically include metrics related to facility maintenance response times, serviceability rates for equipment, energy consumption efficiency, safety incident rates, and customer satisfaction. Without access to the contract's Performance Work Statement (PWS) and associated Quality Assurance Surveillance Plans (QASPs), specific KPIs are unknown. If available, performance data against these KPIs would be crucial for evaluating the value for money and the contractor's effectiveness. A review of past performance reports or CPARS (Contractor Performance Assessment Reporting System) would be the primary source for this information.

What is the breakdown of services included in this $132 million contract?

The contract falls under NAICS code 561210 (Facilities Support Services), which is a broad category. A detailed breakdown of services would typically be found in the Performance Work Statement (PWS). Common services under such contracts include facility maintenance and repair, groundskeeping, pest control, waste management, transportation services, fire and emergency services, and potentially logistical support. The specific mix and emphasis on these services would dictate the overall cost and complexity of the contract, and without this detail, a precise understanding of what the $132 million is funding is limited.

Were there any specific risk mitigation strategies outlined in the contract or acquisition process?

Risk mitigation strategies are often embedded within the contract's terms and conditions, as well as the acquisition planning process. For a contract of this size and scope, potential risks could include contractor performance failures, cost overruns, security vulnerabilities, or unforeseen operational disruptions. The government's risk mitigation might involve robust oversight, clear performance standards, contingency planning requirements, and potentially performance bonds. The fixed-price nature itself is a risk mitigation tool for the government regarding cost certainty, provided the scope is well-defined. A review of the contract documentation and acquisition strategy would reveal specific measures.

What is the potential impact of this contract on the local Mississippi economy?

This contract likely has a positive impact on the local Mississippi economy through job creation, both directly by Vectrus Systems LLC and indirectly through local suppliers and service providers. The wages paid to employees working on the contract contribute to local spending. Furthermore, the presence of a well-supported military installation like Keesler AFB, facilitated by this contract, contributes to the overall economic stability and activity of the surrounding region. The extent of this impact would depend on the number of local hires and the sourcing of materials and services within Mississippi.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA300216R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc.

Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $157,167,553

Exercised Options: $135,911,967

Current Obligation: $131,982,956

Actual Outlays: $53,941,961

Subaward Activity

Number of Subawards: 323

Total Subaward Amount: $42,441,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline